A state government would issue a ________ bond to finance the construction of a toll bridge and then use the tolls to pay for the bond.

Question

Quizplus · Accepted Answer

Revenue bonds are specifically issued to fund projects that generate revenue such as toll bridges, airports, and water treatment plants. The bondholders are paid with the revenue generated by the project, in this case, the tolls collected on the bridge. General obligation bonds are usually used to finance public works projects such as schools and libraries, while convertible bonds give the bondholder the option to convert the bond into stock in the issuing company. Secure bonds may refer to any bond that is backed by collateral or any form of security. T-notes are a type of federal government bond.

A State Government Would Issue a ________ Bond to Finance